Summary: The coverages of the standard homeowners forms (Forms HO 00 02, 03, 04, 05, 06, 08, and 14) are designed to provide the kinds of insurance protection that most homeowners will need. However the needs of individual insureds can diverge, so endorsements are used to tailor coverage to meet these needs. Additionally, insurers may use endorsements to limit coverage, like when the windstorm or hail exclusion endorsement is attached to coastal homeowners policies.

The endorsements discussed here are those under the jurisdiction of Insurance Services Office (ISO). They do not constitute the extent of tailoring possible with respect to homeowners forms. The introduction in the ISO homeowners manual to the program's general rules state that "in all cases not specifically provided for in this manual," the rules, rates, forms, and endorsements of individual insurers govern each coverage. This makes it possible for insurers to develop special endorsements as the need arises, assuming, of course, that the proposed risk is considered insurable and that an appropriate premium can be obtained.

The homeowners program was revised in 2022, with previous versions of 2011 and 2000. Comments relating to individual endorsements below are based on form designations and language of the 2022 ISO homeowners program unless otherwise indicated. The edition date of the 2022 endorsements are generally 03 22;  the 2011 endorsements are generally 05 11. Differences from the 2011 program in language or coverage provisions are noted. This discussion is on multistate forms; endorsements limited to one or two states have not been included.

The endorsements are discussed in numerical order. Because there are so many endorsements, we have split the discussion into multiple sections:

Part 4 HO 04 77 to HO 04 99

Part 5 MH 04 01 to MH 04 47 Mobilehome Coverage

Part 6 HO 05 24 to HO 05 86

Part 7 HO 06 01 to HO 06 49

Part 8 HO 06 51 to HO 06 95

Part 9 HO 07 01 to HO 07 59 Home Business Insurance Coverage

Part 10 HO 24 01 to HO 24 70

Part 11 HO 24 71 to HO 34 03

This endorsement provides broadened theft coverage for property on or off the residence premises, with the limits for each shown on the schedule. 

The 2022 revision updates the special limits of liability for loss by theft to jewelry, watches, furs, and precious stones to $2,000. The new limit for firearms and related equipment is $3,000. The new limit for silver and silverware, gold and goldware, platinum ware and pewter ware including flatware, hollowware, tea sets, trays and trophies made of or including gold, silver or pewter is $3,000. 

Personal property contained in any bank, trust or safe deposit company, public warehouse or self-storage facility will be considered on the residence premises. 

There is no coverage for theft committed by an insured, theft in a dwelling under construction, theft from a part of the residence premises rented the someone other than an insured, and if the loss arises out of "home-sharing host activities" unless the Broadened Home-sharing Host Activities Coverage is added to the policy.

Coverage for property off the residence premises does not include property while at another residence owned by an insured, except while the insured is temporarily living there. Property of an insured who is a student is covered while away from home if the student has been there within 90 days prior to the loss.

This endorsement can only be used with the HO 00 08 form. The $1,000 limit for on-premises theft coverage can be increased to an aggregate limit of $3,000 or $5,000. $1,000 is provided for off-premises coverage.

Loss assessment coverage is provided under all homeowners forms as sections I and II additional coverages. Coverage is provided for loss assessments charged by a property owners' association against the insured in connection with a direct loss to the residence premises or liability relating to the residence premises. The amount of coverage is limited to $2,000 per property or liability loss. Endorsement HO 04 35 may be used to increase the amount of each of these coverages—either section I or section II, or both I and II—up to the limit specified in the endorsement. 

The endorsement does not cover loss assessments arising from earthquakes, or land shock waves or tremors pertaining to a volcanic eruption. Loss assessment coverage charged as a result of those perils is available under endorsement HO 04 36 (see below). Loss assessments on scheduled additional locations may also be covered by this endorsement, for an amount of coverage specified on the endorsement. No more than two locations in addition to the residence premises may be scheduled.

This endorsement can be used with all homeowners forms except HO 00 08 and HO 00 14. 

Loss assessment coverage for loss resulting from earthquake may be added to all forms except HO 00 08 and HO 00 14 by use of this endorsement. Coverage, for an amount specified in the endorsement, applies to loss assessments charged by a property owners' association during the policy period for loss to collectively owned property if loss is caused by earthquake or land shock waves related to a volcanic eruption. The limit of liability is based on the insured's proportionate interest in the value of all collectively owned buildings and structures of the property owners' association. 

Coverage is subject to a deductible that is a specified percent of the limit stated in the endorsement, but not less than $500 for any one assessment. The dollar amount of the deductible is determined by multiplying the limit of liability by the deductible percentage amount. As is the case with many forms applicable to earthquake damage, there is no coverage for flood or tidal wave, even when attributable to earthquake.

This endorsement can be used with all forms except HO 00 08 and HO 00 14.

This endorsement adds coverage for scheduled structures on the residence premises that are rented or held for rental for residential purposes. The Schedule of this endorsement provides for a description of structures and limit of liability. The endorsement states that the business exclusion does not apply to the structures shown in the Schedule.

This endorsement can be used with all forms except HO 00 08 and HO 00 14.

An individual or group other than the named insured may have an ownership interest in the dwelling. For example, when two persons buy a two-family dwelling, each intending to inhabit one unit, one insured buys a homeowners policy with building coverage, while the other buys contents and liability coverage under the HO 00 04 form. The HO 00 04 insured can protect his interest in the building and other structures, plus receive section II coverage (but only with respect to the residence premises) by having this endorsement added to the other insured's policy. No additional premium is charged. The endorsement may also be used for a nonoccupant co-owner of the insured dwelling. A seller or an owner who does not act as a mortgagee can also insure their interest in the building and premises liability under this endorsement.

The additional insured named in the endorsement will be notified in writing of the insurer's decision to cancel or not renew. However, there is no time limit for notification, such as that given to the named insured and mortgagee.

This endorsement can be used with all forms except HO 00 04, HO 00 06, and HO 00 14.

Many homeowners exclusions apply to business activities of an insured. This endorsement deletes these exclusions as they pertain to a business conducted on the residence premises. Because coverage B of the homeowners form does not apply to any structures used for business purposes, the endorsement provides for scheduling a specified amount of coverage for an other structure on the residence premises that is used in a business. 

The homeowners forms limit the amount of coverage for on-premises property used primarily for business to $3,000. This endorsement increases coverage for on-premises property used primarily for "business." The furnishings, supplies, and equipment of the business are covered up to the coverage C limit.

A question that sometimes arises in connection with this endorsement is the type of property that is covered as "supplies." Office supplies, such as paper clips, pads of paper, etc., are covered, but so is the stock of goods held for sale. The definition of "supplies" found in Merriam-Webster Online includes "provisions, stores," and "the quantities of goods or services offered for sale at a particular time or at one price." For this reason, it is important to consider the value of such supplies when setting the amount of coverage C.

The section II exclusion for liability and medical payments coverages in connection with business pursuits of an insured is likewise modified so that section II coverage applies to the necessary and incidental use of the premises for the business described on the endorsement. The liability coverage provided under the endorsement does not include coverage for bodily injury to any employee of the insured for the business described in the Schedule; residence employees in the course of their employment are still covered. 

Because the ISO rules manual does not state the types of incidental businesses that are acceptable, insurers have the right to make their own determinations. Few insurers, for example, will wish to insure a fireworks operation carried out in a shed on the residence premises. Remember as well that "incidental" means that the business should be subordinate to the use of the dwelling as a residence.

This endorsement can be used with all homeowners forms except HO 00 08 and HO 00 14.

This endorsement was new in the 2000 homeowners program. The unendorsed homeowners forms provide that loss to coverage B structures that are not buildings be adjusted on an actual cash value basis. Attaching this endorsement allows certain structures on the residence premises to be adjusted on a replacement cost basis. These structures include: reinforced-masonry walls; metal or fiberglass fences; fences made of plastic/resin materials; patios or walks not made of wood; driveways; inground or semi-inground swimming pools, therapeutic baths or hot tubs with walls and floors made of reinforced masonry, cement, metal or fiberglass (not including their accessories or equipment; and new with the 2022 revision, permanent built-in outdoor kitchens or cooking facilities. If the cost to repair or replace exceeds $5,000, settlement is on an ACV basis until repair or replacement is complete. The insured may elect an ACV basis, and then make a claim for any additional payment if the insurer is notified of this intent within 180 days after the date of loss.

The premium is calculated by multiplying the base premium with the applicable factor. The factor for inground or semi-inground pool, bath, or hot tub is 1.05, and for all other structures: 1.02. 

This endorsement can be used with forms HO 00 02, HO 00 03, and HO 00 05. 

This endorsement provides for automatic increases in the limits of liability for all Section I property coverages in order to avoid underinsurance due to inflation. The specified percentage increase shown in the Schedule applies on a pro rata basis during the policy period.

Premium is determined by multiplying the base premium by the appropriate factor. An annual increase of 4% has a factor of 1.02, 6% a factor of 1.03, and 8% a factor of 1.04. For each additional 4% over 8%, add 0.02 to the factor. The premium for a 3-year policy is 3.2 times the annual policy after multiplying by the applicable factor. 

This endorsement can be used with forms except HO 00 02, HO 00 03, and HO 00 05. 

Homeowners coverage B provides a blanket amount of insurance (10% of the coverage A limit) on other structures (structures on the residence premises set apart from the dwelling by clear space). For situations where that amount provides insufficient coverage, individual structures may be scheduled on this endorsement with a designated amount of insurance applying to each. 

Use of the endorsement does not increase the coverage B amount of the policy; instead, the endorsement makes available an additional amount of coverage for each described structure. For example, if the coverage B amount is $5,000, and $10,000 is needed for adequate coverage on a particular structure, the HO 04 48 is used to write the additional $5,000 insurance on that building. If two or more eligible structures are on the premises, thought should be given to the risk of their simultaneous destruction when considering the adequacy of coverage B.

This endorsement can be used with all forms except HO 00 08 and HO 00 14.

This endorsement covers the insured's interest in additions, alterations, and improvements in a secondary residence (meaning not the residence premises) rented to the insured. The form appears to refer only to one other residence, which can be scheduled in the endorsement, with a corresponding limit. Coverage is provided for direct physical loss caused by a peril insured against. So, for example, if attached to an HO 00 02, named peril coverage applies.

Regardless of the policy, the premium per $1,000 of insurance is found by multiplying the HO 00 04 Amount of Insurance Factor for "Each additional $1,000" by the HO 00 04 All-perils premium.

This endorsement can be used with all forms except HO 00 08 and HO 00 14.